The 7-Step Process
Lock pre-approval BEFORE making offer
Strong pre-approval letter (lender + amount + credit-pull date) signals seriousness. Verbal pre-qualifications are worthless in multi-offer.
Read the listing agent's pricing strategy
Has it been on market 30+ days? Price reduction yet? Comparable closings? These signal seller flexibility.
Use contingencies as negotiation chips
Mortgage contingency, inspection contingency, attorney-review contingency. Stronger offers waive some — but only when you can afford the risk.
Earnest money level
NY standard: 10% earnest money (much higher than national 1–3%). Higher earnest = stronger offer signal. Held in attorney's escrow.
Closing timeline flexibility
Sellers value certainty. Offering 45-day quick-close (when feasible) often beats higher price with 90-day timeline.
Inspection findings — repair credits, not redo demands
Most NY homes are 50–100+ years old. Asking for cosmetic redos kills deals. Asking for repair credits in cash at closing keeps deals alive.
Final negotiation: walk-away price set in writing
Decide your absolute max BEFORE the back-and-forth. Walk away if exceeded. Don't let emotional momentum push you 5–10% over.
Frequently Asked Questions
Yes. NY law explicitly states commissions are negotiable (19 NYCRR §175.7). After the 2024 NAR settlement, buyer-broker compensation is negotiated upfront in a written buyer-broker agreement.
10% of purchase price is the NYC norm — much higher than the national 1–3% standard. Held in seller-attorney escrow. Demonstrates buyer commitment.
Legal but risky on 50+ year old NYC housing stock. Most homes have findings. Waiving contingency = you accept all unknown defects. Inspect anyway, even if not contingent.
If you have a mortgage contingency clause AND meet its conditions (denial letter from lender within timeframe), you get earnest money back. Without contingency: forfeit earnest money.